On a $1,000 payment via PayPal Standard, the fee is $30.49 (3.05%): - 2.99% of $1,000 = $29.90 - Fixed fee = $0.49 - Total fee = $30.39 | You receive = $969.61
For PayPal Checkout: $35.39 fee | $964.61 net
At what volume does PayPal offer lower rates?
PayPal's Merchant Rate program reduces fees based on monthly sales volume: - $0–$3,000/month: 2.99% + $0.49 (standard) - $3,001–$10,000/month: 2.89% + $0.49 - $10,001–$100,000/month: 2.79% + $0.49 - $100,001+/month: contact PayPal for custom rates
At the $1,000 transaction level with $50k/month volume (2.79% + $0.49): Fee = $28.39 | Net = $971.61 — saving about $2 per transaction vs standard.
ACH / bank transfer as a $1,000 alternative
For $1,000 B2B invoices, ACH bank transfer costs $0 (or a flat $1–5 with some processors). This is 30× cheaper than PayPal. If your buyer is a business, offering ACH alongside PayPal with a "3% surcharge for PayPal" is increasingly common and compliant in most US states.